World Bank says AI could fast-track development in emerging nations

A World Bank analysis published on August 4 claims that artificial intelligence could compress a hundred years of development into a single decade for emerging economies, but only if they quickly address deficits in electricity, internet coverage and digital skills. Chief economist Indermit Gill highlighted that, unlike richer countries, developing nations face a smaller share of jobs at risk from generative AI—about 4.5% versus 14.2%—yet stand to gain similar productivity improvements.

The report suggests that low-cost, locally adapted AI tools can improve health diagnostics, education, legal services and agriculture. It also notes the International Monetary Fund’s estimate that AI could lift Sub-Saharan Africa’s output by roughly 4% over the next ten years under favorable conditions. While emphasizing the potential benefits, the paper warns of possible side effects, including greater income gaps, covert misinformation and political repression, and stresses that missing the AI wave could be costly for nations that already lagged behind past industrial revolutions.